$CNP (CenterPoint Energy, Inc.)

Public utility holding company $CNP reported 4Q15 net loss of $509MM or a loss of $1.18 per diluted share, which included pre-tax, non-cash impairment charges totaling $984MM from midstream investments. Revenue fell approx. 24.5% from last year to $1.8Bil in 4Q15. Excluding impairment charges, net income would have been $111MM or $0.26 per share.

CenterPoint Energy Resources (CERC), an indirect subsidiary of $CNP, closed its offering of $300MM of its 4.10% senior notes due Sept. 1, 2047. Net proceeds will be for general corporate purposes, including the repayment of a portion of its outstanding commercial paper.

$CNP announced the closing of its offering of $500MM aggregate principal amount of its 2.50% senior notes due Sept 1, 2022. Net proceeds will be used for general corporate purposes, including the repayment of a portion of its outstanding commercial paper.

$CNP plans to invest in excess of $7Bil in its utilities over the next five years knowing the timeliness and the returns it can get based on the investment. The company added that it would focus remains on the organic investment.

With regards to the strategic review on Enable business in which $CNP owns 54.1% limited partner interest, the company said that it is discussing with other parties in evaluating an alternative. The company added that it has the options of keeping, selling or spinning off the Enable business.

$CNP said that assuming an anticipated positive decision from ERCOT later in 2017 for the $250MM transmission project in Freeport, Texas, the next step would be to file with the Commission. The company anticipates that the construction period of this transmission project would be between 2019 and 2021.

$CNP reaffirmed its earnings estimate for FY17 in the range of $1.25-1.33 per share. This guidance includes anticipated utility operations earnings of $0.93-0.97 per share and anticipated midstream investment earnings of $0.31-0.37 per share.

Utilities company $CNP reported 37% increase in revenue in 1Q17 to $2.73Bil. Net income was $192MM, or $0.44 per share, compared to $154MM, or $0.36 per share in the year-ago quarter. Operating income rose 9% to $274MM.

$CNP's BoD declared a regular quarterly cash dividend of $0.2675 per share of common stock. The dividend is payable on June 9, 2017, to shareholders of record as of the close of business on May 16, 2017.

$CNP filed a rate case settlement with the Railroad Commission of
Texas for its Houston-area customers. If approved by the RRC, the settlement
would increase the company's natural gas distribution base rate revenues for
Houston-area customers by about $16.5MM per year. The new rates are expected to
go into effect in May or June of 2017.

$CNP's CenterPoint Energy Houston Electric business filed an
application for Distribution Cost Recovery Factor with the Texas PUC. This represents
a $44.6MM annual increase over current rates to begin recovering about $479MM in
distribution capital invested in 2016. New rates are expected to go into effect
by September 1.

$CNP appointed Scott Doyle as SVP of Natural Gas Distribution, and Joe Vortherms as SVP of Energy Services. Also Jason Ryan, currently VP of Regulatory Legal, is named VP of Regulatory and Government Affairs. These organizational changes are effective March 1, 2017.

$CNP said that it is expected to be a cash taxpayer. At the end of 2016, the company had no remaining federal or federal tax carry-forwards and does not have tax credits. The company expects effective tax rate and cash taxes to be lower as a result of lower statutory rates and the capital expenditure deductions.

For 2018, $CNP expects earnings momentum to continue, helped by the growth in utility operations and midstream investments. With the current and anticipated rate filings, fully integrated energy services business, and strong performance from Enable business, $CNP targets to achieve or exceed the upper end of 4-6% EPS growth rate for 2018 vs. 2017.

For FY17, $CNP expects EPS to be in the range of $1.25-1.33. This guidance includes anticipated utility operations earnings of $0.93 - $0.97 per diluted share and anticipated midstream investment earnings of $0.31 - $0.37 per diluted share.

$CNP expects lower interest expense for 2017 and a full year of dividend income from its investment in Enable Midstream Partners' preferred units. The company anticipates 2017 capital spending of $1.5Bil, a 14% increase over the prior forecast.